Sustainability reporting: Current state and challenges

Abstract

There exists a huge difference in sustainability reporting adoption & implementation within and between countries which affect achievement of desired results at global level for environmental protection and social development. This study summarises and analyses 133 studies of sustainability reporting published between year 2004 and 2022 in web of sciences (WoS) database through Bibliometric Analysis and also used Theory, Context, Characteristic Methodology framework to represent the state of research in this field for the first time. The study is divided in two sections (1) develop an understanding on sustainability reporting trends and thematic evolution, and (2) discussion on challenges of sustainability reporting adoption and implementation. The present study consolidates the state of research on sustainability reporting. The study finds a thematic shift since 2017 onwards and a significant increase in publications since 2018. It identifies four major thematic clusters namely, sustainability reporting, board gender diversity, content analysis, and ESG disclosure which reveals that ESG reporting, ESG disclosures, and sustainability stakeholder impact assessment has high potential for future research. It also contributes by identifying most prominent theories in the field viz stakeholder, legitimacy and institutional theory and preferred methodology as qualitative research. It finds emerging themes as Sustainability Reporting Quality, ESG disclosure, cross‐country evaluation and also highlights most relevant keywords and trends in the research field. Study recognises lack of common definition and conceptual understanding, standards measurement metrics and cross‐country evaluations as major challenges which stands as big problem at policy formation and implementation stage.

ESG Practices and Financial Stability in Emerging Market Healthcare Companies: Insights Amidst the COVID‐19 Pandemic

“…The corporates working in the area of healthcare must ensure social well-being and profitability simultaneously. Previous studies highlight the importance of theoretical review in understanding conceptual development and the relevance of the study (Daugaard and Ding 2022;Li et al 2021;Paridhi and Arora 2023). It is essential to understand the relevance of ESG reporting theories to study the effect of ESG disclosure on the FP of companies.…”

“…Some countries have opted for voluntary reporting, reflecting a balance between regulatory pressure and corporate responsibility. Many countries have mandated sustainability reporting for certain types of organizations, sectors, or industries (Paridhi and Arora 2023). These requirements vary by country and typically encompass a broad spectrum of ESG issues, such as climate change, labor practices, human rights, and anticorruption practices (Cui, Jo, and Na 2020;Krueger et al 2024).…”

“…In developed countries like the United States, European Union, Canada, Japan, and Australia, a robust regulatory framework is mandating ESG reporting for large companies. For example, in 2009, Denmark became the first country to mandate ESG reporting for large companies, leading others to follow suit (Paridhi and Ritika 2024). These regulations often require adherence to global reporting standards.…”

“…Developed countries typically lead in ESG reporting adoption and quality, while emerging markets are making progress toward compliance, albeit at varying rates (Panda, D'Souza, and Blankson 2019). Bridging the gap between developed and emerging markets necessitates customized approaches that take into account each country's distinct economic, social, and regulatory landscapes (Paridhi and Ritika 2024). Furthermore, efforts to standardize reporting frameworks globally and improve regulatory effectiveness will be critical in advancing ESG practices around the world.…”